The New York State Department of Financial Services (DFS) – (23 NYCRR Part 200 Virtual Currencies) is issuing body for the New York Virtual Currency License. The procedure is conducted via the Nationwide Multistate Licensing System and Registry (NMLS). To access NMLS for the first time, you must complete a Company account request form and identify a primary and secondary Account Administrator. There is a lot of paperwork and required documents in order to get a Virtual Currency license. The whole process of obtaining the license is very difficult and rigorous.
What are the requirements for obtaining a New York Virtual Currency License?
- Application with biographical information of all key persons
- Financial Statements of the two most recent years prepared by a Certified Public Accountant
- Background report of all key persons
- Credit history Current financial statement for the applicant and all key persons
- Banking arrangement details
- Copies of insurance policies of the applicant
- Details about compliance officer and compliance policy
- Anti- Money Laundering Program
- Organizational Documents such as company registration
- Business Plan
- Cybersecurity program
- Verification from the New York State Department of Taxation and Finance that the applicant is compliant with all New York State tax obligations
- Samples of documents and forms which will be used by the business for customers
- The flow of Funds Structure
- Management Chart and Organizational Chart showing ownership percentage
- Additional affidavits as specified in the form
- Permissible investments maintained by the company
- Information regarding foreign Companies/ Persons
- Registration with FinCEN as a Money Services Business
What is the process of obtaining the New York Virtual Currency License?
Completed application has to be uploaded to the Document Uploads section of the Company Form (MU1) in NMLS. Additionally, you may need to provide extra documents for each control person (Individual Form MU2), such as credit reports, personal documents, and financial statements. The Application will then be processed by the Superintendent. The decision on an application will be taken in 90 days. The license is valid for two years. Renewal Fee has not been specified. Quarterly and Annual Financial audited statements have to be submitted every year.
How much does it cost to obtain the New York Virtual Currency License?
Application Fee $ 5,000 (Non-refundable). Credit Report for Control Persons is $15. The capital requirement will be provided by the Superintendent. It has to be maintained in cash, virtual currency, or high-quality, highly liquid, investment-grade assets, in such proportions as are acceptable to the Superintendent. The amount of a Surety bond will be provided by the Superintendent. Legal Fees vary between $80,000-$120,000.
Empire Global has a team of experienced professionals who will assist you through the entire process of New York Virtual Currency License application including assistance in the preparation of documents, submission of application and responding to any queries from the NMLS. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a New York Virtual Currency License.